• ” Implementing Pricing Strategy” Please respond to the following:

• Determine which area you believe provides the greatest challenge for organizations implementing new pricing strategies. Support your argument with specific examples.

The greatest challenge for organizations implementing a new pricing strategy is the input and coordination required across so many different functional areas such as: marketing, sales, capacity management, and finance. Implementing a successful pricing strategy is built on three pillars, an effective organization, timely and accurate information, and appropriately motivated management. To ensure that these three pillars are present it is important that everyone involved in pricing decisions understand what his role in the price-setting process is and what rights he has to participate. For example, the pricing manager might have the right to set the price, sales management might have the right to consult on the pricing decision while senior management might have the right to veto the decision. In most cases, these decision rights are not clearly specified, changing the pricing decision from a well-defined business process to an exercise in political power as various functional areas attempt to influence the offered price.

AND THIS POST:

Jackson

RE: Week 6 Discussion 1